A California federal judge sharply criticized the legal and administrative teams managing Google’s $90 million antitrust settlement with Play Store developers, vowing to "substantially" reduce the attorneys' fees over issues with claim payments. During a heated status conference on Thursday, U.S. District Judge James Donato condemned the settlement administrator, Angeion Group, for its poor handling of developer payments, calling it "the worst performance I've seen."

Google Deal Atty Fee Trims : Complaints Over Unpaid Claims

The hearing was convened after two class members reported difficulties obtaining information about their settlement payments. Judge Donato noted numerous complaints from developers, pointing out that a significant amount of money remains undistributed.

"People are complaining, and it looks like there's a relatively large amount of money that's just hanging out," the judge said. "People say they're calling and calling and calling, and nobody is answering."

Ben Harrington of Hagens Berman Sobol Shapiro LLP, representing the class, acknowledged that 422 developers did not receive their checks due to an address error. These checks were initially sent to outdated addresses that Google had on file, instead of the updated addresses provided by class members on their payment selection forms. Harrington assured the court that the issue had been corrected.

Unclaimed Funds and Communication Failures

Judge Donato was particularly concerned about the uncashed checks totaling $15.3 million, which represents 45% of the class members, or 21,449 developers, who have yet to deposit their settlement payouts. He expressed frustration over the communication failures, emphasizing that these class members are "computer-savvy developers" who should not have trouble accessing their funds.

"It's just wasted money," Judge Donato said. "You've done a poor job of telling people, 'Here are your checks, cash them'."

The judge instructed Harrington to collaborate with Angeion Group to implement a more "aggressive" outreach plan and file a detailed report within 30 days outlining steps to ensure that developers receive their payments.

Discrepancies in Payment Distribution

Further complicating matters, approximately $11.4 million—about 20% of the remaining settlement funds—has yet to be distributed due to insufficient tax and contact information for about 4% of the class members. Harrington noted that obtaining taxpayer identification numbers is a legal requirement for issuing payments exceeding $600.

Judge Donato, dissatisfied with the progress, demanded a clearer timeline: "When will this money get into the hands of developers?" he pressed. Harrington could only respond with "as soon as possible," prompting the judge to call for more definitive answers.

Google Deal Atty Fee Trims : Impact on Attorney Fees

The $90 million settlement was approved in January, ending claims that Google’s Play Store policies unfairly restricted competition and forced developers to use its in-app payment system. At that time, Judge Donato awarded the plaintiffs' counsel their full $26 million fee request but held back 25% pending a post-distribution accounting. In light of the recent issues, the judge has indicated that this fee will face significant cuts.

"The job is poor, and your fees are going to be cut substantially," Judge Donato warned.

Background of the Antitrust Settlement

The settlement involves roughly 48,000 U.S. developers who earn $2 million or less annually from Google's Play Store. These developers accused Google of anticompetitively excluding rival app stores from its Android operating system and enforcing high commissions through an exclusive in-app payment system.

Despite this settlement, Google is still embroiled in antitrust litigation with Epic Games. A separate jury ruling in December found that Google had illegally restrained trade in Android app distribution and billing services. That case is ongoing, with Google appealing the court-ordered injunction.

Google Deal Atty Fee Trims : Legal Representation

The developer class is represented by Steve W. Berman and Ben Harrington of Hagens Berman Sobol Shapiro LLP, Eamon P. Kelly of Sperling & Slater PC, and Melinda R. Coolidge of Hausfeld LLP.

Google’s legal defense team includes attorneys from Morgan Lewis & Bockius LLP, O'Melveny & Myers LLP, and Munger Tolles & Olson LLP.